PayPal will acquire iZettle in US$ 2.2 billion to widen its business in the European market

PayPal Holdings Inc. will acquire iZettle the European financial company which assists in online payments has its main business in the European market. This acquisition will help PayPal to expand its business in the region.
iZettle has succeeded to impress small businesses in Europe to transfer and accept credit card payments from smartphones and laptops as well. The company also offering point-of-sale systems, business loans, and invoicing products. The strategic partnership of both the companies will be profitable, said Chief Executive of PayPal Dan Schulman. He added that both the company’s product portfolio is complementary in terms of offerings and presence in the market.
Also, he believes that this acquisition will help PayPal to widen their presence globally. PayPal’s shares were increased by 1 percent after the hours of trading started and closed with an increase of 1.8 percent whereas, shares of Square Inc. SQ was down by 0.2 percent with the overall drop of 3 percent in regular trading.
It is US$ 2.2 billion deal and largest deal of the PayPal. After the acquisition of the company, PayPal will be able to compete with its rival – Square Inc. SQ. Square offers payment processing tools for small and mid-scale businesses. PayPal is increasingly focused to expand its business into the markets of UK from last some time.
The deal will allow PayPal to offer an omnichannel solution to dominate the market. After the acquisition, PayPal will impress with the balance work and strategies. PayPal said that it is expected that this acquisition will influence the earnings-per-share forecast for a year. The company expected that iZettle will earn a total revenue of US$ 165 million in 2018 and process will take US$ 6 billion in payment volume.
After the deal, it will increase its in-store capabilities in new 11 places including Brazil, Mexico, and France. PayPal shares are increasing its value from last year and gained by 15 percent.